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Derivatives-market participants and regulators are striving to figure out how new rules can be implemented while avoiding unintended consequences. The rules, recently approved by Congress, target major banks, which are blamed for exacerbating the financial crisis with their excess leverage and proprietary trading. "The return on equity for banks is not going to reach the high levels it did in the past, and it could mean costs are passed on," Sherri Venokur, an attorney at Lowenstein Sandler, said at a recent conference.

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The Obama administration has a three-person list of candidates to lead the Consumer Financial Protection Bureau, which will have an estimated budget of $500 million and will write and enforce rules for credit cards, mortgages, student loans and debt collection. The first director of the agency will set priorities and shape its culture. Elizabeth Warren, a Harvard University professor; Michael S. Barr, assistant secretary of the Treasury Department; and Eugene I. Kimmelman of the Justice Department make up the short list.

Derivatives-market participants and regulators are striving to figure out how new rules can be implemented while avoiding unintended consequences. The rules, recently approved by Congress, target major banks, which are blamed for exacerbating the financial crisis with their excess leverage and proprietary trading. "The return on equity for banks is not going to reach the high levels it did in the past, and it could mean costs are passed on," Sherri Venokur, an attorney at Lowenstein Sandler, said at a recent SIFMA conference.

Take it from grandma: An e-mail just doesn't convey the same heartfelt message as a handwritten note, Charlie Judy writes. "When's the last time you sent a thank you note to one of your employees?" he asks.

Rep. Barney Frank, D-Mass., said Congress should consider a $90 billion tax on financial institutions proposed by the White House to cover the cost of the rescue of the industry. Treasury Secretary Timothy Geithner said the Obama administration is planning to push for a broader tax, Frank said. He also said he plans to draft legislation that would establish a system to replace Fannie Mae and Freddie Mac, which have private shareholders and a public mission. "I'm more on the side now of trying to separate out this hybrid thing," Frank said. "I believe we should go out of here with a version of what's going to replace it."

Bank of America posted weak earnings for the second quarter and said legislation to overhaul financial regulation might cost the company billions in lost revenue. CEO Brian Moynihan said it would take years to offset the revenue lost, but he offered few details about how that would be done.